Question 1

Which of the following is the most risky?

Accepted Answer

A) Buying stocks online 
B) Buying on margin 
C) Buying from a broker 
D) Buying a bond 
A) Buying stocks online 
B) Buying on margin 
C) Buying from a broker 
D) Buying a bond

Question 2

The largest stock exchange in the United States is the ________.

Accepted Answer

New York S

Question 3

Which of the following stocks is the best value considering only the dividend it pays?

Accepted Answer

A) BlackDeck 
B) Boeing 
C) BoWater 
D) CitiGroup 
A) BlackDeck 
B) Boeing 
C) BoWater 
D) CitiGroup

Question 4

A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

Accepted Answer

A) True 
 B)False

Question 5

When you buy a stock on margin,your gain is magnified if the stock goes up in value.

Accepted Answer

A) True 
 B)False

Question 6

Approximately how much did Clorox earn per share of common stock during the last year?

Accepted Answer

A) $1.16 
B) $2.00 
C) $)26 
D) $6.35 
A) $1.16 
B) $2.00 
C) $)26 
D) $6.35

Question 7

A stock purchased at a price of $22 per share,has risen to $46 per share.You wish to avoid losing your profit; therefore,you should put in a sell stop order at a price of
(a)$22 per share
(b)$40 per share
(c)$43 per share
(d)$46 per share

Accepted Answer

The sell stop order should be

Question 8

A stop order is a special form of limit order; it is an order to execute a transaction when the stock price reaches a specified level.

Accepted Answer

A) True 
 B)False

Question 9

You can currently borrow up to 75% of stock transactions under today's margin rate.

Accepted Answer

A) True 
 B)False

Question 10

The best time to sell stock is when you

Accepted Answer

A) need the money. 
B) think the stock price has peaked. 
C) want to purchase another stock. 
D) have achieved 25% return. 
A) need the money. 
B) think the stock price has peaked. 
C) want to purchase another stock. 
D) have achieved 25% return.

Question 11

How much cash would you need to purchase 500 shares of stock at $21 per share plus brokerage commissions of $125,if you purchase on margin and the margin requirement is 50%?
(a)$10,625
(b)$5,312.50
(c)$10,500
(d)$5,250

Accepted Answer

(b)(500 shares × $21

Question 12

Limit orders can only be placed for a short period of time,usually a week or less.

Accepted Answer

A) True 
 B)False

Question 13

Before buying a stock,you should estimate its future market value,just as you would the future value of a car or a home.

Accepted Answer

A) True 
 B)False

Question 14

Stocks would be most favorably affected by

Accepted Answer

A) a decline in interest rates and a decline in inflation. 
B) an increase in interest rates and a decline in inflation. 
C) a decline in interest rates and an increase in inflation. 
D) an increase in interest rates and an increase in inflation. 
A) a decline in interest rates and a decline in inflation. 
B) an increase in interest rates and a decline in inflation. 
C) a decline in interest rates and an increase in inflation. 
D) an increase in interest rates and an increase in inflation.

Question 15

The purchase of 48 shares of stock is considered a(n)________ transaction.

Accepted Answer

The answer of The purchase of 48 shares of stock...

Question 16

NASDAQ has less stringent trading requirements than the organized exchanges and tends to attract newer,high-tech companies.

Accepted Answer

A) True 
 B)False

Question 17

The American Stock Exchange (AMEX)is the largest of the physical stock exchanges.

Accepted Answer

A) True 
 B)False

Question 18

The ________ is the most common measure of inflation.

Accepted Answer

consumer p

Question 19

Stocks are usually bought or sold in round lots,which are multiples of $100.

Accepted Answer

A) True 
 B)False

Question 20

The stock exchange which is the largest in terms of dollar volume is the

Accepted Answer

A) NYSE. 
B) AMEX. 
C) NASDAQ. 
D) regional exchanges. 
A) NYSE. 
B) AMEX. 
C) NASDAQ. 
D) regional exchanges.

Exam 15: Investing in Stocks

Which of the following is the most risky?

The largest stock exchange in the United States is the ________.

Which of the following stocks is the best value considering only the dividend it pays?

A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

When you buy a stock on margin,your gain is magnified if the stock goes up in value.

Approximately how much did Clorox earn per share of common stock during the last year?

A stock purchased at a price of $22 per share,has risen to $46 per share.You wish to avoid losing your profit; therefore,you should put in a sell stop order at a price of (a)$22 per share (b)$40 per share (c)$43 per share (d)$46 per share

A stop order is a special form of limit order; it is an order to execute a transaction when the stock price reaches a specified level.

You can currently borrow up to 75% of stock transactions under today's margin rate.

The best time to sell stock is when you

How much cash would you need to purchase 500 shares of stock at $21 per share plus brokerage commissions of $125,if you purchase on margin and the margin requirement is 50%? (a)$10,625 (b)$5,312.50 (c)$10,500 (d)$5,250

Limit orders can only be placed for a short period of time,usually a week or less.

Before buying a stock,you should estimate its future market value,just as you would the future value of a car or a home.

Stocks would be most favorably affected by

The purchase of 48 shares of stock is considered a(n)________ transaction.

NASDAQ has less stringent trading requirements than the organized exchanges and tends to attract newer,high-tech companies.

The American Stock Exchange (AMEX)is the largest of the physical stock exchanges.

The ________ is the most common measure of inflation.

Stocks are usually bought or sold in round lots,which are multiples of $100.

The stock exchange which is the largest in terms of dollar volume is the

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters